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Adapt Quickly: 4 Ways to Cut Tech Costs
With economic unpredictability, fluctuating budgets, and changing priorities, it’s a tough task for business and tech leaders to stretch resources without stifling innovation.
The 2022 Gartner Midyear Recession Survey results reveal that 78% of [CIO & IT leader] respondents are looking for ways to cut costs.*
Here are four ways to adapt quickly, make smart cost-cutting decisions, and capitalize on opportunities.
1. Take a close look at your tech spending and investment commitments
Set reduction targets, ensure continuous alignment, and reforecast as conditions change.
Make technology financial management work for you
Reduce or delay your addressable spend and redirect budget to business-critical priorities.
Typical customer outcomes:
Reduction in planning effort and cycle time
Budget variance relative to actuals
Micron harnessed the power of Apptio to eliminate Excel inputs, improve productivity, and increase accountability with a single source of truth.
in costs freed up
2. Say goodbye to cloud waste
Tackle orphaned volumes, over-provisioned virtual machines and databases, and unused commitments.
Practice disciplined cloud financial management
Gartner estimates that “through 2023, in the absence of rightsizing discipline, over 30% of the growing expenditure on software and cloud services will be unused.” The potential for wasted spend is huge.
Identify chances to reduce cloud waste and make sure resources are set aside for crucial tech investments.
With Apptio, Koch Business Solutions got a clearer view of their spending across multiple cloud platforms. They improved cost efficiency by enhancing their commitment coverage and rightsizing their resources. The result?
in cost savings that can be reinvested in product innovation
3. Calculate the total cost of your applications and services
When you figure out the total cost of ownership (TCO) and use unit economics, you’ll have a clearer view of what your tech actually costs. This way, you can focus more on applications that bring value and less on those that don’t.
Put the power of a purpose-built solution in your hands
With the popular “as a service” model for application delivery (e.g., SaaS, IaaS, PaaS), it’s easy for waste to accumulate without anyone noticing. But by automating billing data ingestion, classifying charges, and allocating labor and non-labor costs to the apps and services responsible, you can drive financial accountability and efficient usage.
Typical customer outcomes:
Reduction in app TCO
Decrease in multi-cloud costs
Accurate allocation of cloud spend
With Apptio, MassMutual gained a clearer understanding of their entire technology cost structure. This enabled them to speed up planning cycles and provide the financial transparency and consumption-based allocations their business leaders needed.
in stranded and direct costs eliminated
4. Ruthlessly prioritize every budget, resource, and work priority
Keep an eye on usage and spend by business unit
You need a single-pane-of-glass solution that makes it easy to deliver a user-friendly bill with accurate tech costs and influence behavior by setting defensible pricing strategies.
Typical Apptio customer outcomes:
Improvement in forecasting accuracy
Faster time to value
Make smarter decisions to cut costs and drive business value
If you’re feeling the heat to cut costs, don’t worry — you don’t have to waste hours sifting through complex spreadsheets or axe crucial projects that bring true value to your business.
With Apptio, you don’t have to go at it alone. We’re here to help you take a closer look at where your money is going, identify any unnecessary spending, and pinpoint areas where you could adjust your investments to boost business value. Plus, we’ll show you how to free up funds so you don’t miss out on opportunities for innovation. It’s all about putting the power of technology in your hands to make smarter financial decisions.
*Gartner®, 2023 Planning Guide for IT Operations and Cloud Management, Oct 2022
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
